Quick Stats

Quick Stats

You are here

NEW YORK - On Thursday Albertsons became the third of the big three US grocery chains to warn that fierce competition from discounters such as Wal-Mart is forcing it to cut prices, saying that third-quarter profits were likely to be 5 percent to 10 percent below earlier guidance.

October 31, 2002, 07:00 pm

NEW YORK - On Thursday Albertsons became the third of the big three US grocery chains to warn that fierce competition from discounters such as Wal-Mart is forcing it to cut prices. The Boise, Idaho-based retailer said third-quarter profits were likely to be 5 percent to 10 percent below earlier guidance. It also cut its expectations for the full-year. Sales from stores open at least a year were expected to be down 2 percent, also worse than expected.

Similar warnings have already come from its competitors, Kroger and Safeway. After the news on Thursday, Albertsons shares tumbled almost 19 percent to two-year lows. The gloomy outlook wiped out more than $2 billion in Albertson's market capitalization, and sent shares of rival Kroger to close off almost 4 percent, as well as shares of Safeway Inc., which dropped 7 percent.

Albertson's said underlying earnings from continuing operations were now estimated at 47-49 cents a share against the 52 cents expected previously.